MARKET DEVELOPMENT
RHB Research Maintains Overweight on Plantations
RHB Research Maintains Overweight on Plantations
17/06/2014 (The Star) - RHB Research believes crude palm oil (CPO) should start trading higher, especially after its price has recovered above the RM2,400 level.
It said on Tuesday the current hot and dry spell in Malaysia, due to the southwest monsoon that is expected to persist until September, will hurt palm oil production. This was much like in January to February this year.
“Also, tensions in Iraq are boosting crude oil prices and biodiesel margins, which will increase demand. Maintain Overweight,” it said.
RHB Research also said the price weakness of the past week represents a correction within an uptrend as catalysts are in place to lift palm oil and plantation stock prices.
It said on Tuesday the current hot and dry spell in Malaysia, due to the southwest monsoon that is expected to persist until September, will hurt palm oil production. This was much like in January to February this year.
“Also, tensions in Iraq are boosting crude oil prices and biodiesel margins, which will increase demand. Maintain Overweight,” it said.
RHB Research also said the price weakness of the past week represents a correction within an uptrend as catalysts are in place to lift palm oil and plantation stock prices.